Unconditional clearance given
The European Commission has announced that it has approved the planned transaction to merge the Networks Business Group of Nokia and the carrier-related operations of Siemens into a new company, to be called Nokia Siemens Networks. According to the Commission's assessment, the transaction would not restrict effective competition in the relevant markets of mobile and fixed telecom networks and services.
CEO designate of Nokia Siemens Networks, Simon Beresford-Wylie, welcomed the decision, saying it was an important step towards full regulatory approval and good news for customers. "We believe this decision by the European Commission is a key milestone in obtaining all the relevant approvals for the transaction. While there are notifications still pending in some countries, based on this decision we are optimistic that the merger can be closed within the timetable anticipated by both parties."
Beresford-Wylie also reiterated the benefits and strengths of the new company, saying: "Nokia Siemens Networks will have the scale and broad product portfolio necessary to compete globally and create value for shareholders. We will be well-positioned to help our customers meet the challenges of lowering costs, growing revenue, and seizing the opportunities presented by converging technology."
On June 19, 2006, Nokia and Siemens announced plans to combine Nokia's Networks business group and Siemens' carrier-related operations for fixed and mobile networks to form a new company called Nokia Siemens Networks. The new company, with 2005 calendar year pro forma revenues of EUR 15.8 billion, is uniquely positioned to deliver compelling customer benefits with a comprehensive portfolio of products and solutions for the converging telecommunications market. Nokia and Siemens continue to expect that the operations of the new company will start in January 2007.